Noel Ahern (Dublin North West, Fianna Fail)
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Question 206: To ask the Minister for the Environment, Heritage and Local Government if he will clarify the situation in relation to the second home tax; if there is an exemption from the tax in a case in which a house occupied by a childless elderly couple has been transferred or sold to other siblings but when the new owner does not have effective ownership in view of the fact that both the elderly couple have a right to occupation in the house for life. [26217/10]

John Gormley (Dublin South East, Green Party)
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The Local Government (Charges) Act 2009, which gives effect to the €200 charge on non-principal private residences, defines "owner" at section 1 as "a person . . . who . . . is entitled to receive the rent of the property, or where the property is not let, would be so entitled if it were so let".

Where a property is willed or gifted to an individual and a right of residence is retained by the original owner or occupier, I have been advised that liability to pay the charge depends on whether the right of residence is exclusive. If the right of residence is exclusive and the owner does not have an entitlement to seek or receive rent, he or she is not an "owner" within the meaning of the Act until that right ceases to affect the property. In such a case, there would be no liability for the charge.

Noel Ahern (Dublin North West, Fianna Fail)
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Question 207: To ask the Minister for the Environment, Heritage and Local Government if any review has been made of the tax on second homes; and if consideration has been given to introducing a graduate rate on the basis of owners age, if they are an old age pensioner, income or second property size; if a statement can be made on the matter specifically in relation to complaints from elderly pensioners who own barely habitable country cottages which have been willed to them from within families and are being retained as holiday homes for sentimental reasons and for siblings living abroad who like to stay in the home place on occasional visits here. [26218/10]

John Gormley (Dublin South East, Green Party)
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The Local Government (Charges) Act 2009, which sets out the detail of the €200 charge on non-principal private residences, is structured from a starting position of a universal liability for the charge in respect of residential property. It goes on to exempt certain properties and owners from the charge, the most significant exemption being where a property is occupied by the owner as his or her sole or main residence on the liability date.

If a property is not occupied by the owner as his or her sole or main residence, it is generally the case that the property is available to the owner as a source of economic or other benefit. In a case where a property is being retained as a holiday home for relatives, there is a direct benefit to those relatives from the property being in the owner's possession. In these circumstances, an annual charge of €200 is modest.

In devising the charge, it was intended that it should be as simple and straightforward to administer as possible. I have no plans to introduce graduated rates which would unnecessarily complicate the administration of such a modest charge.